News / Page 376

Forex News – BOE raises UK growth forecasts

Posted on November 13, 2013 at 2:41 pm GMT

The Bank of England published its latest quarterly inflation report today, giving a very hawkish view on the UK’s economic growth outlook this time compared to its previous inflation report in August. The BoE raised its growth forecasts, seeing gross domestic product (GDP) expanding in 2013 by 1.6%, which is higher than its previous forecast of 1.4% made in August. Additionally, it expects the economy to expand by 2.8% in 2014. The BoE was also very optimistic about the UK [..]

European Session – Sterling steals spotlight and rallies on hawkish BOE inflation report, UK data

Posted on November 13, 2013 at 1:36 pm GMT

Sterling took the spotlight today and was the best performing major currency after an upbeat Bank of England quarterly inflation report and improved UK jobs data.The BOE raised its growth forecast for the UK and BOE Governor Mark Carney in a press conference today said that he believes that the unemployment threshold of 7% could be reached by next year. Thus the central bank would be able to keep the benchmark interest rate unchanged at the record low 0.5% until [..]

Technical Analysis – EURGBP

Posted on November 13, 2013 at 8:48 am GMT

EURGBP rallied strongly since the November 7 low of 0.8299 to gain over 160 pips to the November 13 high of 0.8462. This high was retested again today and has proven to be a strong resistance level, leading the pair to ease back down, where it is currently finding support at the 21-period moving average. The first support level is at 0.8442 and below this, further support is seen at 0.8432 and 0.8415. The main driver for the EURGBP pair [..]

Asian Session – US dollar mostly flat as market awaits Yellen

Posted on November 13, 2013 at 7:33 am GMT

The US dollar was in waiting mode against the euro, as the euro’s moderate rebound this week held, trading unchanged at 1.3435. In economic data out of Asia, Australian consumer sentiment rose 1.9% in November versus a drop of 2.1% the previous month. On the other hand, 3rd quarter wages rose by an annual pace of 2.7% against expectations of a 2.9% rise, showing that wage growth is not particularly strong in Australia. It appears that consumers were getting more [..]

US Session – Dollar holds above 99 yen after Chicago Fed data

Posted on November 12, 2013 at 8:46 pm GMT

The US dollar held firm against the yen after an upbeat Chicago Fed National Activity Index showed the US economy grew a bit faster in September. The data comes after Friday’s stronger-than-expected US nonfarm payrolls numbers. The more positive the data are, then the more likely the Fed will begin trimming stimulus sooner than previously anticipated. The dollar rose to a two-month peak against the yen, sustaining levels above the key 99.00 level to end the US session up 0.03% [..]

Forex News – Weaker-than-expected UK inflation hits sterling

Posted on November 12, 2013 at 2:38 pm GMT

[caption id="attachment_11208" align="alignnone" width="550"] (click to enlarge)[/caption] The pound made a 2-month low against the dollar today on the release of lower-than-expected inflation data for October. Specifically, the Consumer Price Index for October posted a monthly increase of only 0.1% compared to expectations of a rise of 0.4%. The annual rate of increase was 2.2% against an expected increase of 2.5%. September’s inflation rate was 2.7%. The rate of inflation was severely moderated by a big drop in transport costs, [..]

European Session – Sterling falls as softening UK inflation reduces chance of rate hike

Posted on November 12, 2013 at 1:29 pm GMT

Sterling was the biggest mover during the European session after weakening on softer UK inflation data. CPI (consumer price inflation) was sub-forecast at 2.2% annually versus analysts’ expectations for a 2.5% rise. The lower inflation rate is closer to the Bank of England’s 2% target and thus lessens the chance of a rate hike until at least 2015. This was the main reason behind the fall in sterling today. The pound fell to a two-month low against the dollar, reaching [..]

Technical Analysis – GBPUSD under pressure

Posted on November 12, 2013 at 8:40 am GMT

On the Daily chart, GBPUSD has been rallying since July 9 until peaking on October 1 and has since been consolidating. The pair has been capped below 1.6259 and supported above 1.5893. The pair has been back under pressure and is trading in the lower range after falling during the past three days. Today’s UK October CPI will be a key driver. Today’s forecast is for a print of 2.5%. A number below this would weigh on the pound, and [..]

Asian Session – US dollar outperforms on views of strong US economy

Posted on November 12, 2013 at 7:46 am GMT

The dollar climbed to a 1 ½ month high versus the yen in Asian trading, rising 0.48% to 99.63. Market participants were watching whether the dollar would attempt to scale the 100 yen level again. Data that Japanese consumer confidence dropped sharply during October compared to the previous month, did not help support the yen. In economic data, the October UK RICS housing survey index climbed to an 11-year high, suggesting a booming housing market in Britain. According to the [..]

US Session – Dollar rally cools in thin trading conditions

Posted on November 11, 2013 at 8:29 pm GMT

The US dollar took a breather following strong gains last week as the market tried to digest the previous week’s major events such as the quarter-point rate cut by the ECB and the strong nonfarm payrolls for October. The euro managed to rebound by 0.10% to trade above the 1.34 level at 1.3408 versus the greenback. Generally the new market consensus was to sell the euro, as the ECB could be forced to take additional action to stimulate the Eurozone [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

News

XM Live Chat